Limbach (NASDAQ:LMB) vs. MasTec (NYSE:MTZ) Head-To-Head Review

Limbach (NASDAQ:LMB) and MasTec (NYSE:MTZ) are both industrials companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, valuation, earnings, risk and dividends.

Risk and Volatility

Limbach has a beta of 1.37, suggesting that its stock price is 37% more volatile than the S&P 500. Comparatively, MasTec has a beta of 1.91, suggesting that its stock price is 91% more volatile than the S&P 500.

Institutional and Insider Ownership

55.8% of Limbach shares are owned by institutional investors. Comparatively, 78.1% of MasTec shares are owned by institutional investors. 7.0% of Limbach shares are owned by insiders. Comparatively, 21.4% of MasTec shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Limbach and MasTec”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Limbach	$646.80 million	1.02	$39.06 million	$2.56	21.93
MasTec	$14.30 billion	1.01	$399.04 million	$6.12	29.49

MasTec has higher revenue and earnings than Limbach. Limbach is trading at a lower price-to-earnings ratio than MasTec, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Limbach and MasTec’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Limbach	4.23%	24.40%	11.29%
MasTec	2.80%	17.89%	5.74%

Analyst Recommendations

This is a summary of current ratings and price targets for Limbach and MasTec, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Limbach	1	1	2	1	2.60
MasTec	0	2	20	0	2.91

Limbach currently has a consensus price target of $70.25, indicating a potential upside of 25.11%. MasTec has a consensus price target of $345.60, indicating a potential upside of 91.50%. Given MasTec’s stronger consensus rating and higher possible upside, analysts clearly believe MasTec is more favorable than Limbach.

Summary

MasTec beats Limbach on 10 of the 15 factors compared between the two stocks.

About Limbach

Limbach Group, Inc. provides building systems and related services across the United States. Its work includes the design, installation, maintenance and repair of heating, ventilation and air conditioning (HVAC), plumbing, electrical and building automation systems. The company serves building owners and operators in sectors that include healthcare, education, government, commercial real estate and industrial facilities. Its services range from system upgrades and renovations to ongoing facility maintenance and energy-related improvements.

About MasTec

MasTec, Inc. is an infrastructure construction and engineering company that builds and maintains systems used to deliver energy, communications and other essential services. Its work includes planning, installation, upgrading and maintenance of infrastructure for customers across a range of industries. The company’s activities include communications networks such as fiber and wireless systems; electric power transmission and distribution; clean-energy and other infrastructure projects; and pipelines and related facilities.